The media has blown the mortgage crisis out of proportion. While the institutional lenders have tightened the qualifying requirements, contrary to the belief of the general public, lenders are still loaning money to people looking to purchase a new home. In order to get a loan, a buyer must demonstrate employability, job stability and reliability.  Reliability includes holding a steady job for a least 2 years with the same company or employer and increasing or at least maintaining consistent income. You also must demonstrate that you have been a good credit risk for 2 years or more.  Credit doesn’t have to be perfect. Click here for your FREE credit report.

With the shift in the market, many buyers are going with FHA loans. FHA was created by congress in 1934 to help borrowers make loan qualification easier and to reduce the risk to lenders in issuing loans. FHA minimum down payment requirement will be increased from 3% to 3.5% as of January 1, 2009. If you don’t have the 3.5% down payment, buyers are allowed to ask the seller to contribute money for down payment and/or closing costs.

If you are thinking of purchasing a home but not sure if you can qualify for a loan, it is recommended that you contact a reputable lender. Pre-approvals are free of charge and are usually good for 6 months. If you are turned down for a loan, the loan officer will make recommendations on what you can do to improve the chances of qualifying for a loan.

Thinking of buying a home but not sure what to do? Contact me for a FREE home buyer consultation. Also, search the entire MLS for FREE at www.joestacy.com.

“I KNEW THE RECORD WOULD STAND UNTIL IT WAS BROKEN.” -Yogi Berra.

And while last week’s Jobs Report wasn’t the worst record breaker of all time, it showed a loss of 533,000 jobs during the month of November, which represented the most job losses the US has seen in 35 years. And adding more pain to the Report were heavy downward revisions for September and October, which erased an additional 199,000 jobs. In addition, last month was only the fourth time in 58 years that our economy lost over 500,000 jobs.

So what does this mean for Bonds and home loan rates? We first have to acknowledge that we are not in a typical trading environment, where weak or negative economic reports always lead to improved pricing for home loans and vice versa. The dynamics of hedge funds de-levering - where fund managers are selling all types of securities with whatever timing they need to, in order to raise capital - have caused unprecedented volatility of late, and it is not quite clear when that will end.

The Fed has indicated that they would like to be a buyer of Mortgage Bonds, which has resulted in attractive, lower rates right now. But as stated above, the trading environment is extremely volatile, and opportunities to capitalize on lower rates that make sense should be taken advantage of. There have been recent rumors of interest rates being brought down towards 4.5% by the Treasury. This irresponsible release included no definitive plan, no indication of who might qualify, or what the restrictions would be. Like many other recent legislative “solutions”, the restrictions might be very tight, with income limits set very low, and as a result, helping very few people. Remember, it may make sense for you to act now, and take advantage of current historically low rates…with the possibility of refinancing should rates decline further.

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The Schaumburg Park District is sponsoring their Holiday Wonderland Festival at the Community Recreation Center located at 505 N. Springinsguth Rd in Schaumburg on Saturday December 13^th from 12:00-3:00 PM. Come out and enjoy games, crafts, toys, entertainment and prizes. Other activities include caroling, kiddy train rides, pictures with Santa and Mrs. Claus, concessions and much more.

Pre-registration (Deadline Dec. 12) cost is $5 per child. Day of event cost is $7. Parents and children under 1 are FREE.  Call 847- 490-7020 for more information.

The Hoffman Estates Park District is sponsoring the FREE Annual Celebration of Lights on Saturday December 6th at the Willow Recreational Center located at 3600 Lexington Drive in Hoffman Estates from 6:00-8:00 PM. Children are invited to take part in crafts, play holiday games, and enjoy light refreshments and entertainment as they wait for Santa to visit. There will also be a tree lighting at 6:30 PM.

The Hoffman Estates Park District is also sponsoring Breakfast with Santa at Poplar Creek Country Club on Sunday December 14th from 9:00-1:00 PM. Come and enjoy a fabulous breakfast buffet while meeting Santa.  Adults - $14.95,  Children 4-10 yrs.  - $9.95, Children 3 and under - FREE. For reservations, call (847)781-3655.  Click here for the menu.

Immediately following at 6:00 p.m. will be the annual Bartlett Holiday Tree Lighting sponsored by the Bartlett Chamber of Commerce. Events also include holiday singing and refreshments. For full details, contact the Bartlett Chamber of Commerce at 630-830-0324 or visit www.bartlettchamber.com.

It is important for both new homebuyers and homeowners who want to refinance to understand how to lock in an interest rate when applying for a mortgage loan. Understanding how rate locks work prepares you to evaluate your options.

While you are in the process of applying for your mortgage loan, interest rates will most likely fluctuate from day to day and week to week. If you want assurance that the wonderfully low interest rate on your loan will not increase while you are waiting for loan approval, ask for a rate lock. A conventional rate lock is a guarantee from the lender that your mortgage will carry a particular interest rate, with specific, predetermined points and fees.

The interest rate is “locked in” for a specified period of time, usually thirty days. When you call a lender for a rate quote, ask how long that rate will last for. If you think you might need more than thirty days to complete your home purchase or refinance, tell your lender how many days you will require, and they will give you an adjusted rate quote.

Rate locks are especially useful if interest rates are on the upswing, and you are concerned about ending up with higher monthly payments. If you cannot afford the risk of a further interest rate increase, lock in your loan rate now.

Get more information about the Real Estate Market and Mortgage Rates Here!

In the Northwest Suburbs of Illinois we can experience some severely cold winters. Over the years, I have witnessed many maintenence mishaps caused by the winter weather.  To prevent winter-related disasters, a little preparation makes all the difference!  Here are some tips for preparing your home for the winter season:

• Caulk and weatherstrip your windows to keep air from escaping through small cracks. Also, consider sealing any older or unused windows using a plastic window-sealer kit, which can be an inexpensive and relatively easy weekend project.

• Make sure that your chimney is clear. To do this, simply light some rolled up newspaper in the fireplace to see if the smoke rises. If it doesn't rise, your chimney is clogged and in this case you should contact a professional chimney sweep for proper cleaning.

• Prevent your pipes from freezing by wrapping them in insulation or newspapers.  To block moisture, cover the newspapers with plastic.  Also, during extreme cold temperatures, let faucets drip a little to help avoid any freezing from taking place. When in doubt, always know where your water valves are located and how to shut them off in the case of an emergency.

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“THE IMPORTANT THING IN THIS WORLD IS NOT SO MUCH WHERE WE STAND, AS IN WHAT DIRECTION WE ARE MOVING.” -Oliver Wendell Holmes.

And when it comes to the direction our economy may be moving, there was some surprising news from the Fed last week that the “Minutes” from their October meeting revealed.

After years of being concerned about inflation, the Fed is now concerned about deflation. So what exactly is deflation? Deflation is when prices drop, which generally is due to lack of demand, and therefore lack of pricing power. With the economy slowing down, we are hearing economists forecast that we may be in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds, because the fixed payment received would actually buy them more goods and services over time as prices decline.

So what does this mean for home loan rates? Remember, home loan rates improve as Bond pricing moves higher - and more demand for Bonds would mean higher prices for Bonds. In the spring of 2003, when Alan Greenspan uttered the “D” word, deflation, Bonds rallied 400bp in just a few weeks, bringing a significant drop in home loan rates. Of course, the economy is different right now, but as more money may be headed towards Bonds in a deflationary environment, we could again see a significant improvement in home loan rates down the road. Read the rest of this entry »

If you are looking for a new home and own an iphone, there are some new mobile applications available to help with your home search. These new applications will make it possible for you to search and view local homes for sale right from your phone.

The following are some of the latest real estate related iphone applications:

Trulia iPhone has already been downloaded more than 70,000 times. This application gives special attention to open houses, which is handy for anyone who is out and about and wants to find homes nearby.

HomeFinder provides users with listings from for-sale-by-owner websites as well as feeds from MLS’s and brokerages.

Don’t own an iphone?  You can still search the MLS!  Click here to set up your own MLS search or email me if you would like me to set up a personalized search for you based on your specific needs.

Joe Stacy of Koenig & Strey GMAC Real Estate Services in Schaumburg participated in an intensive, three-day Listing Specialization course in Atlanta, GA, learning with a select group of REALTORS how to dramatically improve the services they render to real estate sellers, thereby enabling sellers to obtain the home value that they’re looking for in less time and with fewer hassles.

Stacy, who ranks substantially above the average Realtor, helps over 50 homeowners move per year. The typical agent in the U.S.A.  averages less than 12 transactions per year.

According to Stacy, “The practice of listing specialization has created an opportunity for sellers to receive an unmatched level of professional service, and I’ve made a commitment to serve my clients this way.”

Stacy learned new strategies, systems, and techniques for enhancing a powerful, effective home selling side of the real estate business, focused on helping sellers obtain the best price for their home in the shortest possible time.

According to Howard Brinton, founder and CEO of STAR POWER Systems, participants in these events are part of an elite group of agents. “The quality of the learning experience and the depth of the practical knowledge and skills acquired by participants is unparalleled.”

Brinton claims it is rare in any industry, and certainly in real estate, to find this level of commitment to clients and employees. “Joe has demonstrated a deep commitment to better serve his clients. His dedication is evidenced in his investment in this course, and the substantial expense involved to be here. Joe is something special, and the clients and employees who are served by him are fortunate indeed,” he said.

Koenig & Strey GMAC Real Estate’s Schaumburg office is located at 2570 W Schaumburg Rd. Schaumburg, IL 60194 and can be reached at 847-874-6731. Koenig & Strey GMAC has 28 residential brokerage offices and over 1,250 sales associates serving Chicago, the North Shore, Lake County, and the northwest and western suburban areas. Koenig & Strey GMAC Real Estate is an exclusive affiliate of Christie’s Great Estates. For additional information, please visit www.joestacy.com .